The front month viscosity spread, the price difference between 180-cst and 380-cst swaps, continued to come off its recent high and settled at $5 a tonne on Tuesday. On Friday, the spread was at $7 a tonne, its highest since Oct. 15.

In the physical market, two cash deals were fixed in the Platts window totalling 40,000 tonnes of 180-cst fuel oil. Tuesday’s deals were done at a wider discount of minus $2 to minus $2.50 a tonne to Singapore quotes, compared to the last time the 180-cst fuel traded at minus $1 a tonne on Friday.

Traders said that Mercuria was active in both seeking and offering 380-cst in the window. Mercuria’s offers for 380-cst fuel were most aggressive at minus $2 a tonne, compared to offers from Glencore, Repsol and Gunvor that ranged between a discount of 75 cents a tonne to parity to Singapore quotes, sources said.

Mercuria was also most aggressive in seeking 380-cst fuel oil after having placed bids at a discount of $5 a tonne to Singapore quotes across the assessment window, compared to others that bid in the range of about minus $2.25 to minus $4.30 a tonne to Singapore quotes, trade sources said.

RELATED NEWS:
– Crisis-struck Venezuela is sending two supertankers filled with fuel oil across the oceans to Singapore, in what traders described as a surprise move that could help ease a tight market.

– Oil fell below $50 a barrel on Tuesday as concern about a potential slowdown in economic growth that would sap demand trumped supply outages in Nigeria and other exporting nations.

– Shipping Corporation of India (SCI) will resume sailing to Iran this month after a four-year gap, transporting an oil cargo for a state-run refiner, the chairman of India’s biggest shipping company said on Tuesday.

SINGAPORE CASH DEALS – Two cash deals reported. For further details, please see